Prison funding bill advances among cost concerns

On Thursday, Arkansas General Assembly's Joint Budget Committee advanced Senate Bill 354, which grants $750 million in spending authority to the state Department of Corrections for a new 3,000-bed prison in Franklin County. The bill, sponsored by Sen. Jonathan Dismang (R-Beebe), passed with votes of 17-10 in the Senate and 16-10 in the House (among Budget Committee members) and now moves to the full Senate.

 

Key Points:

  • The estimated total cost for the prison is $825 million, per a Vanir Construction Management Inc. report. The state is paying Vanir, a California firm, $16.5 million to consult.
  • The state has already set aside $75 million for the project.
  • $330 million is in a restricted reserve fund, requiring additional legislative approval to access.
  • The bill requires a three-fourths majority in the Senate and House to pass.

 

Debate Highlights:

  • Sen. Dismang emphasized this bill is an appropriation step, not a funding decision.
  • Sen. Jimmy Hickey (R-Texarkana) proposed setting aside $750 million plus an additional $250 million for prison funding, but his amendment failed in JBC Special Language Committee.
  • Concerns were raised about cost overruns, with some legislators predicting expenses could exceed estimates.
  • Sen. John Payton (R-Wilburn) warned of staffing shortages, suggesting only 1,000 beds might be usable.
  • Sen. Bryan King (R-Green Forest) criticized the process, saying he wouldn't trust prison builders to stay on budget.
  • Sen. Bart Hester (R-Cave Springs) defended the estimated cost, saying the project will be built within the $825 million cap.

 

Project Background:

  • Gov. Sarah Huckabee Sanders announced in October 2024 the purchase of 815 acres for $2.95 million to build the prison.
  • The Arkansas Board of Corrections approved design service contracts, with final approval expected by May 20, 2025.
  • Senator King expects the actual cost to be around $1.5 billion.

 

Quotes from the committee:

  • Senator Bryan King, R-Green Forest, said that "I would trust Dracula running a blood drive before I would trust prison building companies on keeping their estimates." [Against]
  • Senator Terry Rice: "I have lost confidence in the people that are working on this." [Against]
  • Senator John Payton: "I really think we are going to build a 3,000-bed prison and may only be able to use 1,000 beds of it because we can't find the staff." [Against]
  • Senator Gary Stubblefield: "I promise you this one will go over budget." [Against]
  • Senator Bart Hester: "What is the cost to society? What are the costs to the people? How do we answer to the people at home when there is no misdemeanor justice?" [For]
  • Senator Ben Gilmore: "There are a lot of things that we can do, a lot of levers we can pull to control those costs.” [For]